Financial Services Workers Overtime Pay Lawyer
If you are a worker in the financial services industry and you believe that you are owed overtime pay from your employer, you should contact a financial services workers overtime pay attorney immediately. An attorney can review your case, analyze your unique situation, and explore your legal options. Every employee deserves to be fully compensated for the amount of hours they work, especially if they are working overtime.
Numerous job titles have been created in the financial services industry over the past few decades, including stock broker, mortgage loan officer, loan processor, financial services consultant, and others. These titles are typically for employees who perform a wide range of duties, but the words imply that there are administrative functions.
It is not uncommon for an employer to attempt to misclassify one of these employees as exempt from overtime pay regulations because of the misapplication of the word “administrative.” Just because your job title implies administrative work, it does not mean that you truly do administrative work. Many titles in the financial services industry imply some form of administrative function when sales or production is the primary duty of the employee.
Administrative Function
Administrative employees are considered to be exempt from overtime pay. Some employers will attempt to classify many of their employees as exempt from overtime pay due to the legal exemption for those who perform administrative functions. It is important for employees to understand that if the following three criteria are not met, then the employer may be illegally misclassifying the employee, and the employee may be entitled to unpaid overtime wages.
- Form of compensation. For an employee to be truly administrative, they must receive a salary or fee of at least $455 per week.
- Defining administrative functions. The employee’s main duties must include work related to general business operations or management.
- Discretion and judgment. The employee’s principal duties must allow for independent judgment and discretion in performing their tasks. If there are strict rules and guidelines that the employee must adhere to, then they may not be administratively exempt.
Determining Overtime Eligibility
The first step in determining one’s eligibility for overtime pay is to classify the work that was completed. The Fair Labor Standards Act (FLSA) classifies employees as either exempt or nonexempt. Only work that is completed outside of a nonexempt employee’s regular working hours classifies as overtime work.
Nonexempt vs. Exempt
An exempt employee is exempt from collecting overtime wages. There are typically three key factors that help determine this exemption.
- How much the employee is paid/their salary level
- The method by which the employee is paid
- What the employee’s job duties consist of
Each specific job duty will determine an employee’s eligibility, but most exempt workers include:
- Salespeople
- Seasonal workers
- Workers who earn a commission
- Agricultural workers
- Administrative, executive, or professional industry workers
Nonexempt workers are legally entitled to receive overtime pay for the amount of overtime hours that they work. Nonexempt workers typically include:
- Construction workers
- Electricians
- First responders
- Mechanics
- Plumbers
It is important to note that there can be exceptions to the nonexempt vs. exempt rule. Just because you are a financial services worker and you typically are considered to be a professional worker, it does not mean that you automatically are classified as an exempt worker.
What Is a 1099 Employee?
One thing that definitively sets an independent contractor position apart from an employee on paper is the way they pay taxes. At the end of the year, an independent contractor will receive a 1099 tax form. This form is specifically for individuals who ” work for themselves.” Because taxes aren’t collected from their checks throughout the year, they might need to pay more than other employees.
Thus, they are considered to be self-employed and offer niche services to multiple companies on an as-needed basis. These workers are often referred to as “1099 employees.”
A true employee, on the other hand, works directly for the company. They are required to show up at the company at their scheduled time daily and are, theoretically, expected to continue doing so indefinitely. Additionally, unlike an independent contractor, who offers services outside of the company’s industry, an employee has a line of work that is in line with the company’s directive objectives, purposes, and services.
Steps to Recover Unpaid Wages
If you have not been paid your fair share of overtime wages, there are a few options that you can take to help resolve the issue.
Unpaid Overtime Complaint
Filing an unpaid overtime complaint with the Wage and Hour Division (WHD) can open up an investigation into your case. The Wage and Hour Division is a federal agency that oversees all FLSA regulations for businesses and employers. The WHD falls under the U.S. Department of Labor.
Once an unpaid overtime complaint is filed, the WHD will investigate the employer to determine if their compensation practices are in accordance with the FLSA. If there is a violation, then the Secretary of Labor may take legal action against the employer on your behalf.
If you file a complaint with the WHD and it leads to a case filed by the Secretary of Labor, you will not be eligible to take legal action against the employer through a private attorney. If the WHD finds that the employer did not violate any laws regarding payment under the FLSA, then you will not be able to pursue further legal action.
Engage a Private Attorney
With the help of a qualified attorney, you may be able to pursue private legal action against your employer. You will need to prove that you worked overtime hours and were not compensated for them. If the case is successful, then you may recover all unpaid overtime wages. The employer will likely have to pay out a settlement for unpaid wages, attorney fees, court costs, any related damages, and other associated legal fees.
Collective Action
A collective action occurs when there are multiple parties that are under similar circumstances, and they file similar cases against another party. For example, if you file an overtime pay case and you discover that there are other employees who are in a similar situation, you may have the option of taking collective action against the employer. You are entitled to file a separate individual claim against your employer but if you discover the possibility of a class action, it may be worth exploring.
FAQs
Q: How Is Overtime Pay Calculated?
A: Overtime pay is calculated by taking the employee’s salary and multiplying it by 1.5. Overtime pay must be paid out anytime an employee is required to work hours that exceed their regularly scheduled hours. For example, assume that an hourly employee’s regular hourly pay rate is $15. The employee works 50 hours for the week, which is 10 hours over their regularly scheduled hours. The overtime pay that is due to the employee would be calculated by multiplying the 10 overtime hours by $22.50, which is 1.5 times the regular $15 an hour.
Q: What Is an Exempt Employee?
A: An exempt employee is one who is exempt from overtime pay. The Fair Labor Standards Act (FLSA) defines employees as either nonexempt or exempt. An exempt employee is exempt from minimum wage requirements and overtime pay. These employees are exempt because they receive a fixed salary rather than an hourly wage.
Exempt employees typically work in what are considered professional or executive types of occupations. The requirements can vary by state, but exempt employees typically work in professional, executive, or administrative jobs.
Q: Are Independent Contractors Eligible for Overtime Pay?
A: Independent contractors are ineligible to receive overtime pay. Under the FLSA, independent contractors are not considered employees and are therefore not entitled to overtime pay like a standard hourly employee.
It is not uncommon for employers to attempt to misclassify their employees as independent contractors to avoid overtime pay. If these situations come up, it is important that you engage the help of a seasoned overtime pay attorney who can assess your situation. To qualify as an independent contractor, the worker must pass the test requirements for independence.
Q: What Is the Time Limit for Taking Action Against an Employer?
A: Under federal law, you generally have two years to take legal action against your employer. Overtime laws generally allow employees to recover overtime pay for work that was performed up to two years ago. There is a three-year statute of limitations that applies if the employer knew of the overtime work performed and knowingly violated the FLSA by not paying for the overtime work. Working with an experienced overtime pay attorney can help resolve your case in a timely fashion and ensure that you receive the pay that you deserve.
Q: How Can an Overtime Pay Attorney Help?
A: An overtime pay attorney can help evaluate your situation, provide the proper legal advice that you need, and help you proceed with your case. There can be strict legal deadlines that must be met. Without the aid of qualified counsel, you could unintentionally prolong your case. There can also be strict legal documents that must be completed, and they can be confusing without an experienced attorney on your side. Filing a claim may be the only solution for you to get the fair compensation that is owed to you.
A Law Firm You Can Trust
As a worker, it can be extremely disheartening for an employer to not pay you your fair overtime pay. If you are working overtime hours, then you should be fairly compensated for them as permitted by the law. This can lead to very stressful situations. It is critical to have a legal team fighting on your side and advising you on the necessary steps to get your fair compensation. The right lawyer can ease the stress of your case and help get you the pay you deserve.
At Ferraro Vega San Diego Employment Lawyers, our team has ample experience in helping workers all across California. Our law firm can treat every case with the dedication, compassion, and resilience that it deserves. Contact our office today to see how our lawyers can help you resolve your case.